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The deal with see the bank support the delivery of new homes over the next five years.
Irwell Valley Homes is a not-for-profit housing association that provides houses and services for more than 16,000 people across Greater Manchester.
Danske’s funding will help it deliver a further 1,260 homes for rent, plus supported housing.
Around 260 of the houses are already on site or have received planning approval, with a further 1,000 in the pipeline.
Irwell Valley will also use the funding to improve and expand its existing stock in estates such as Sale West in Trafford, where work on 79 homes has begun.
Helen Nicholson, executive director of finance and governance at Irwell Valley Homes, said: “It has never been more important for people to have a safe, decent home. The demand for affordable housing continues to rise.